Facebook is on the verge of a $100 billion IPO and it seems lately that more and more info is coming out about how they do business practices and how well their advertising actually works. Now we are getting reports that the lifeblood of the social media’s revenue, social gaming, has the possibility of taking a huge hit in the next coming months.
One huge problem that Facebook might face is the exodus of social gaming platforms due to their intolerance of working with developers.“Facebook’s attitude is that it doesn’t need to accommodate or work with game developers,” says longtime gaming and technology analyst P.J. McNealy. “We have talked to a wide range of developers, and they’re frustrated because they perceive that Facebook devotes its resources and its promotions to Zynga, giving little incentive for developers to engage with Facebook.”
Zynga gaming currently represents about 12 percent of Facebook’s revenue and likely a larger percentage of profit so it is actually in Facebook’s best interest to make nice with the gaming developers other than Zynga and invent tools to help make their life easier to get bigger profit streams.
A few gaming companies have already started to get off of the Facebook train and start to develop for the more competitive world of mobile gaming. “The trend of moving game development off Facebook to other platforms is already underway,” McNealy added. Zynga is one of these game companies with their recently announced plans to start hosting their games away from Facebook.